Find the minimum constant workforce, Applied Statistics

Find the minimum constant workforce:

ABC Company, a manufacturer of roofing supplies, has developed monthly forecasts for roofing tiles. The forecasted demand and the expected production days for months January to June in 2013 are given below:

Month

Forecasted demand (units)

Production days

January

1200

22

February

2500

19

March

1300

21

April

3500

20

May

1200

22

June

1700

20

ABC works 8 regular hours in each working day and past experience shows that one worker takes 2 hours to produce one tile. The company has estimated that there would be 6 production workers working in December 2012 and 550 tiles in inventory at the end of December 2012. Labor Union restricts ABC that overtime hours cannot exceed 20% of straight time (regular) hours in each month. ABC wants to keep at least 200 tiles in inventory at the end of June 2013. ABC has the following cost information:

Inventory holding cost

$5/unit/month

Backorder cost

$12/unit

Subcontracting cost

$28/unit

Straight time labor cost

$10/hour

Overtime cost

$20/hour

Hiring cost

$1000

Firing cost

$2000

If ABC allows backorders but does not want to use subcontracting or overtime,

a. Find the minimum constant workforce required to meet the above requirement (level production strategy).

b. Develop an aggregate production plan with the minimum constant workforce obtained in part (a) (level production strategy).

c. Estimate the total cost of the plan in (b).

If ABC wants to maintain zero inventory at the end of each month in 2013 except June, and does not want to use subcontracting or overtime,

d. Develop an aggregate production plan with zero inventory policy (chase strategy with flexible working hours).

e. Estimate the total cost of the plan in (d)

Posted Date: 2/14/2013 7:28:33 AM | Location : United States







Related Discussions:- Find the minimum constant workforce, Assignment Help, Ask Question on Find the minimum constant workforce, Get Answer, Expert's Help, Find the minimum constant workforce Discussions

Write discussion on Find the minimum constant workforce
Your posts are moderated
Related Questions
Type of Correlation 1.      Positive and Negative Correlation: 2.      Simple Partial and Multiple Correlations. 3.      Linear and  Non linear or Correlations

In an agricultural experiment, we wish to compare the yields of three different varieties of wheat. Call these varieties A, B and C. We have a ?eld that has been marked into a 3 *


Make a decision about the given claim. Do not use any formal procedures and exact calculation. Use only the rare event rule. Claim: A coin favors head when tossed, and there

The proportion of American Express credit-card holders who pay their credit card bill in full each month is 23%; the other 77% make only a partial or no payment. (a) In a random

Explain the characteristics of business forecasting.

Lifts usually have signs indicating their maximum capacity. Consider a sign in a lift that reads "maximum capacity 1400kg or 20 persons". Suppose that the weights of lift-users are

You are currently working with a supplier who is producing a shaft whose diameter specification is 6.00 ± .003 inches.  Currently, the process is yielding shafts wit

Let X, Y, and Z refer to the three random variables. It is known that Var(X) = 4, Var(Y) = 9, and Var(Z) = 16. It is further known that E(X) = 1, E(Y) = 2, and E(Z) = 4. Furthermor

Caveat We must be careful when interpreting the meaning of association. Although two variables may be associated, this association does not imply that variation in the independ